Same old reports and snippets of news that have been reported for years and years. There is nothing new. Edl have held the rukwa licences for nearly 4 years and haven't yet dug a bag of coal, got a partner or anywhere near enough funds to even think about a power plant. Edl should have suitors clambering over themselves with what they have but they seem very reluctant to actually move things along at any great pace. Slow and slower is their pace and if the Tanzanian government think they are dragging their arses too much they can and will take the rukwa licence off of edl and give it to a company with a few more brain cells and a lot more drive to see things progress. Happily chugging alone year after year draining the finances with wages and bonuses it not the way good business should be done, but here it is the norm.
It has been reported that Tanzania’s power demand could increase by between 11% and 13% over the next 10 years. According to the East African Business Week, this is largely due to growing urbanisation and improving standards of living.
It has been estimated that Tanzania could need up to 3 800MW installed capacity by 20205, up from the current 925MW.
With much of the country’s power being generated by hydro power, Tanesco is under pressure to keep up generation due to increasing drought in the region. Currently, capacity is down by some 25 – 45%.
In 2010, Tanzania had an installed electricity generation capacity of 887 MW, only 660 MW of which was available to the Grid. In the same year, electricity demand exceeded available capacity by 33.2%.
The Minister for Mineral Resources, Prof Sospeter Muhongo has said that coal-based power generation is an option being explored by the country, as it is scaleable and flexible enough to plug any gaps in generating capacity.
“Coal fired power stations have a relatively low capital cost, construction time is relatively short and, at the end of operations, have low remediation costs,” he said.
Edenville Energy (LSE:ED), which mines Tanzania’s Rukwa coalfields (Mkomolo, Namwele and Muze), rose by GBP0.01, or 11.82 percent, to reach GBP0.06. The company has 173 million tonnes of mineable coal at Mkomolo, Namwele and Muze combined; 57.5 million tonnes of that amount are measured and indicated at 17.42 megajoules per kilogram.
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